Investors in Mum Jeweller’s Scheme Move EOW Amid Rs 300 Cr Crisis

EOW is in the process of carrying out preliminary investigation and verifying claims of the complainants.

Published02 Nov 2019, 05:13 PM IST
India
3 min read

Several investors in gold schemes gathered around Mumbai-based Rasiklal Sankalchand Jewellers on the intervening night of Wednesday, 30 October, and Thursday, 31 October, asking for their money to be returned, Mid-Day reported.

The amount deposited by the investors in gold schemes run by the Ghatkopar-based jeweller is reportedly at least Rs 300 crore.

As per Mid-Day, few local jewellers mentioned that the directors of Rasiklal Sankalchand Jewellers, founded in 1972, are Vatsal Jayesh Shah, Jayesh Rasiklal Shah, Zenil Jayesh Shah and Nilesh Rasiklal Shah.

‘Outlet Had Been Defaulting on Payments’: Local Jeweller

As reported by Mid-Day, a jeweller said, "During demonetisation, the Rasiklal outlet used to remain open till early hours. However, in the past few days, they had been defaulting on payments to gold suppliers, which adversely impacted their business."

Further, the jeweller said that the Rasiklal outlet had allegedly taken a loan from a bank and, in turn, had put their assets as collateral for the same.

“It was becoming difficult for them to repay it. Worst was that some schemes involved depositing a certain amount of gold and getting one gram extra. This made it difficult for them to raise funds. We have also learnt that they were delaying the salaries of the staff.”
A jeweller, as per the report

As per few locals, the shop was shut on Monday, which created panic among people. Rumours surfaced that the outlet’s gold stock is nearly zero. However, Rasiklal Sankalchand said the shop is normally closed down for two days after Dhanteras, Mid-Day reported.

Police Awaiting Documents of the Complainants

Two complainants have given written complaints to the Pantnagar police, but police are awaiting supporting documents that would prove that the complainants had invested Rs 20 lakh and Rs 40 lakh in the scheme.

According to Mid-Day, Sanjay Bhalerao, senior police inspector of Pantnagar police station, said, "We have only received two complaints so far, wherein the complainants have stated that they had invested over Rs 20 lakh and Rs 40 lakh and that they have been cheated. We are waiting for them to submit documents to corroborate the claims."

The official further said that they are expecting 10-12 more complaints and accordingly will reach out to the directors of the jewellery shop.

A case will be registered after they take evidence and versions of all the stakeholders into consideration, he added.

Member of Parliament Manoj Kotak and MLA Parag Shahm, along with some investors, on Friday, 1 November, met Joint Commissioner of Police (EOW) Rajvardhan Sinha, who appointed Senior Police Inspector M Lad to assist the case.

Sinha further said that no FIR has been registered so far and that they are in the process of carrying out preliminary investigation and verifying claims of the complainants.

‘Only Influential Ones Got Some of Their Investments’ Back’: Complainants

Regarding MLA Parag’s meeting with the outlets’ owners, he mentioned that he, along with other investors, insisted that some portion of the investments should be paid back to the investors immediately.

"When I met the proprietors along with the investors on Tuesday, they were making excuses that they would sell their assets and pay everyone. But we insisted that certain percentage of the invested amounts be paid immediately and he agreed to pay 10 to 15 percent of the deposited value in the form of gold ornaments. Gold worth Rs 1.5 crore was given to investors till early morning," MLA Parag told Mid-Day.

However, few residents alleged that some influential people got back a portion of their investment, while the others still don’t have any clarity.

Denying the allegations, Parag mentioned that he helped everybody who was there at the spot on Tuesday.

Further, Brickwork Ratings, a rating agency, downgraded the rating of outlet’s bank loan facilities of Rs 105 crore from BWR triple B to BWR BB Plus, The Economic Times reported. The rating was reportedly modified owing to ‘non-cooperation of the issuer.’

(With inputs from Mid-Day, The Economic Times)

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